06/25/1980 Meeting - Laserfiche WebLink

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. or as a member of an elected body. The public must look at other intentions to . provide for long-term security of the downtown. He said he does not feel there should be a raid on the general fund, The council must look at the contract in front of them, not rely on good faith, and determine if the benefits are worth the risk of operating at a deficit. Ms. Schue said she agrees with Mr. Delay and feels they should go ahead with this project since it is too late ~o back off. Mr. Lieuallen said he doubted that anyone on the council was seriously considering that position; they were merely trying to clarify points. He asked Mr. Kupper if it is legal to use tax increment money for operating expenses. Mr. Kupper responded that the Eugene Renewal Agency could sell revenue bonds backed by tax increments. He said he feels that since people are relying on room tax funds to operate the Performing Arts Center, council needs to be careful about making other commitments for that money. Mr. Richards noted he was uncomfortable using tax increment money to pay operating expenses, and feels they should be used only for deficits, and he feels that this should be not be done after the first two or three years. Mr. Obie noted that the conference center is being built with tax increment funds and these funds should not be used for operating expenses. Mayor Keller invited the developers to speak. Grant Kesler thanked the council, especially Councilors Delay and Obie. He also thanked Mr. Kupper and those who made the commitment and are taking the e risk--First National Bank, Oregon Bank, Citizens Bank and the Benjamin Franklin Savings and Loan. He noted that the changes suggested are not opposed by the developers. It would be of no disa9vantage to them, but could be an advantage to the City. If the hotel fails, and the conference center is not needed, there should be a way out. Security has been registered and approved in New York, C~lifornia, and Oregon. They have executed contracts with Vik/Cannon Construction. The plans are completed and they can begin construction within the next 10 days. Mr. Delay said he feels the comment Mr. Obie made about not using tax increment funds points to a question of exactly how the council is going to deal with this reality. Monies should come from directly related revenue. Mayor Keller complimented the council on achieving the goals of obtaining the Performing Arts Center and the hotel. He feels these are important in trying to develop a good economic package for downtown Eugene. He noted his apprecia- tion to councilors and staff. He noted that it has not been easy. Ms. Smith moved, seconded by Mr. Lieuallen, that the council approve the Hilton Hotel/conference center agreement, Mr. Obie said he assumes this motion includes the letter of intent of good faith. Mayor Keller responded that it does. e 6/25/80--9